At which fill rate does lost cash flow approximately equal inventory investment?

Problem 5: Cost of Lost Sales Current service level = 70% Orders per year = 700 Units per order = 50 Price per unit = $130 Net cost per unit = $70 Re-handling cost per backorder = $120 Administrative cost per backorder = $40 Reshipping cost per backorder = $140 Invoice deduction per backorder = $300 Percent incomplete orders backordered = 80% Percent incomplete orders cancelled = 20% Inventory carrying cost = 30% Cost of capital = 16% ant rentice level? Assume that there is a certain level of inventory investment needed to achieve each level of service. Fill rate Inventory Investment Alpha 50% 60% 70% 80% 90% 95% $60,000.00 1.00 $75,000.00 1.25 $105,000.00 1.75 $150,000.00 2.50 $210,000.00 3.50 $285,000.00 4.75 18. At which fill rate does lost cash flow approximately equal inventory investment? a. 73.0% b. 85.0% C. 81.0% d. none of the above